[Federal Register Volume 61, Number 137 (Tuesday, July 16, 1996)]
[Rules and Regulations]
[Pages 36997-37001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17690]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 729

RIN 0560-AE82


Amendments to the Peanut Poundage Quota Regulations

AGENCY: Farm Service Agency, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule sets forth regulations for Federal farm 
peanut poundage quotas in order to implement provisions of the 
Agricultural Market Transition Act of 1996 (the 1996 Act) for the 1996 
through 2002 crops of peanuts. The amendments to the regulations 
adopted in this interim rule involve: eliminating the national poundage 
quota floor; eliminating the undermarketing carryover provisions; 
establishing temporary seed quota allocations; establishing the 
ineligibility of certain farms for quota allocation; authorizing the 
inter-county transfer of farm poundage quota in all States, subject to 
certain percentage limitations on certain transfers in certain States; 
eliminating the special allocations of increased quotas for certain 
Texas counties; and establishing new provisions for ``considered-
produced'' credit with respect to a farm whose quota has been 
transferred.

DATES: Effective April 4, 1996.
    Comments must be received on or before August 15, 1996, to be 
assured consideration.

ADDRESSES: Submit comments on the interim rule to: Director, Tobacco 
and Peanuts Division, Farm Service Agency, U.S. Department of 
Agriculture, Room 5750-S, Ag Code 0514, P.O. Box 2415, Washington, DC 
20013-2415. All written submissions made pursuant to this rule will be 
made available for public inspection in Room 5750 South Building, USDA, 
between the hours of 8:15 a.m. and 4:45 p.m., during regular Federal 
workdays.

FOR FURTHER INFORMATION CONTACT: David Kincannon, (202) 720-7914.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This interim rule has been determined to be significant and was 
reviewed by OMB under Executive Order 12866.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this interim rule because the Farm Service Agency (FSA) 
is not required by 5 U.S.C. 553 or any other provision of law to 
publish a notice of proposed rulemaking with respect to the subject 
matter of this rule. Environmental Evaluation
    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an Environmental Assessment nor an 
Environmental Impact Statement is needed.

Unfunded Federal Mandates

    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the Unfunded Mandate Reform Act of 1995 
(UMRA), for State, local, and tribal governments or the private sector. 
Thus, this rule is not subject to the requirements of sections 202 and 
205 of the UMRA.

Federal Assistance Program

    The title and number of the Federal Assistance Program, as found in 
the Catalog of Federal Domestic Assistance, to which this interim rule 
applies are: Commodity Loans and Purchases--10.051.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12778

    This interim rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this interim rule do not preempt State 
laws to the extent that such laws are inconsistent with the provisions 
of this interim rule. Before any legal action is brought regarding 
determinations made under provisions of 7 CFR part 729, the 
administrative appeal provisions set forth at 7 CFR parts 11 and 780 
must be exhausted. This rule has been made retroactive to April 4, 
1996, in order to affirm determinations for the current crop year that 
had to be made in advance of this notice because of the time of the 
passage of the 1996 Act and the onset of the planting season for 
peanuts.

National Appeals Division Rules of Procedure

    The procedures set out in 7 CFR parts 11 and 780 apply to appeals 
of adverse decisions made under the regulations adopted in this notice.

[[Page 36998]]

Small Business Regulatory Enforcement Fairness Act of 1996

    Section 161(d) of the 1996 Act provides the regulation necessary to 
implement Title I of the 1996 Act must be issued within 90 days of 
enactment and that such regulations shall be issued without regard to 
the notice and comment provisions of section 553 of the United States 
Code. These regulations affect the immediate planting and marketing 
decisions of an extraordinarily large number of agricultural producers 
and previous decisions of the agency. Accordingly, as authorized by 
section 808 of the Small Business Regulatory Enforcement Fairness Act 
of 1996, this rule is effective as of April 4, 1996, the date of 
enactment of the 1996 Act.

Paperwork Reduction Act

    As provided in section 161(d) of the 1996 Act, the Paperwork 
Reduction Act is not applicable to these regulations. However, the 
forms necessary to conduct these programs have been previously 
submitted for clearance to the Office of Management and Budget under 
the provisions of 44 U.S.C. chapter 35.

Background

    This rule addresses peanut quota amendments for the 1996 through 
2002 crops which were enacted in section 155 of the 1996 Act.

A. Certain Farms Ineligible to Hold Peanut Poundage Quota

    Section 358-1(b)(1) of the 1938 Act, as amended by the 1996 Act, 
provides that, effective beginning with the 1998 crop of peanuts, 
quotas shall not be established for farms owned or controlled by 
municipalities, airport authorities, schools, colleges, refuges, and 
other public entities (not including universities for research 
purposes), or by a person who is not a producer and resides outside the 
State in which the quota is allocated. Section 729.205 has been added 
to the regulations accordingly and provides, consistent with the 1996 
Act, that if a farm is ineligible for peanut poundage quota as of 
August 1, 1997, under the provisions of the 1996 Act, the quota held by 
such ineligible farms must be sold by October 1, 1997, or it will be 
allocated to other farms within the same State, beginning with the next 
crop year. Under the interim rule, if an ineligible party acquires a 
quota farm after that date, no quota will be established for the farm, 
but the quota, for subsequent crop years, may be sold to a qualifying 
farm, provided that the normal conditions for sale are met.

B. Elimination of Quota Floor, Establishment of the National Poundage 
Quota, and Peanut Quota Referendum

    The 1996 Act provides for referenda for peanut quotas and amends 
section 358-1(a)(1) of the 1938 Act to eliminate the floor for the 
national quota. In addition, the 1996 Act excludes seed peanuts from 
the calculation of the basic national quota. This rule revises section 
729.216 (as redesignated) of the regulations accordingly.

C. Temporary Seed Quota Allocation

    The 1996 Act amendments to the 1938 Act also, however, provide for 
adding to a farm's basic quota a temporary allocation of quota for the 
amount of seed peanuts planted on a farm. This rule amends the 
definition of ``effective quota'' in section 729.103 of the regulations 
accordingly.
    This rule adopts a national seeding rate for each type of peanut 
and provides that the quantity of temporary seed quota allocated to a 
farm shall equal the amount determined by multiplying the acres planted 
to peanuts by the national per-acre planting rate by peanut type. The 
seed planted will be converted to farmers stock basis by multiplying, 
by a factor of 1.5, the amount of seed so calculated. Another option 
considered was setting a rate as a maximum with producers required to 
prove actual seed purchases and use, with the lower of the standardized 
maximum or the proven seed use establishing the seed quota allocation. 
Comments are requested on these and any other options, and on: (a) the 
issues of increased producer workload involved with proving seed use, 
(b) the use of a standardized national seeding rate vs. a standardized 
State seeding rate, and (c) the seeding rate amounts.
    For purposes of determining seed use, the national per-acre 
planting rate by type shall, for this calculation, be equal to:
    (i) 95 pounds for Runner-type peanuts;
    (ii) 110 pounds for Virginia peanuts;
    (iii) 80 pounds for Spanish peanuts; and
    (iv) 80 pounds for Valencia peanuts.
    The temporary seed allocation will be made after the producer files 
a proper certification of planted acres.

D. Elimination of ``Undermarketings'' From Quotas

    In accord with the 1996 Act, this rule also eliminates previous 
undermarketings from quota calculation for peanuts.

E. Reallocations in Texas of Increased Quota

    The 1996 Act removes the special quota allocation provisions that 
formerly applied to Texas only, in cases where the national quota is 
increased. This rule amends section 729.206(f)(former 729.204(f)) of 
the regulations, as redesignated, accordingly.

F. Inter-county Transfers

    The 1996 Act removes the previous prohibition of inter-county quota 
transfers in large-quota States to allow, with limits, the transfer of 
farm poundage quota by sale or lease to any county within each of those 
States. Such transfers are limited to an aggregate of 40 percent of the 
total poundage quota within a county as of January 1, 1996, and may not 
exceed a crop year limit of 15, 25, 30, and 35 percent for the 1996 
through 1999 crops respectively and 40 percent for the 2000 and 
subsequent crops. Further, however, in any county with a quota 
allocation less than 50 tons for the preceding year's crop, all or any 
part of a farm poundage quota may be transferred by sale or lease or 
otherwise from a farm in the county to a farm in the same State. These 
prescriptions are set by the 1996 Act.
    This rule has adopted selection by lottery to implement the out-of-
county sale and lease limitation provisions in counties where the 
amount of farm poundage quota requested for such sale and lease was 
greater than the limitation for the current year. This rule amends 
section 729.214 (former 729.212) of the regulations, as redesignated by 
this rule, to implement the limitation requirements. Other options 
considered with respect to administering the transfer limitation 
included a first-come, first-considered basis and a proration of the 
limited amount among all applicants. Time constraints and the 
practicality of transferring only portions of a farm's quota were the 
major determinants in selecting the lottery method. Comments are 
requested on these or any other options for controlling the transfer 
limitation and on the issue of giving priority to quota sales over 
quota leases.
    Also, current regulations in part 729 have prohibited the approval 
of any transfers filed after January 31 and before August 1 if the 
approval of such transfer would result in a transfer both to and from 
either the transferring or receiving farm during such period. Although 
this rule does not revise the regulation, comments are requested on 
whether to allow a farm to make a transfer both ways in the same period 
so

[[Page 36999]]

long as the transfer from the farm is a temporary transfer.
    In addition, section 729.214(f)(3)(i), as redesignated, is amended 
to ease the prohibition against permanent transfers of quota from a 
farm to which quota had been transferred during the base period (the 3 
immediately preceding crop years). The revised paragraph will limit the 
prohibition to the amount of quota permanently transferred to the farm 
during the 3-year period.

G. Considered-Produced Credit

    Section 358-1(b) (3) and (4) of the 1938 Act provides that to the 
extent practicable and on such fair and equitable basis as the 
Secretary may provide, a farm will, generally, lose any quota which is 
not produced or considered produced on the farm in 2 out of 3 
consecutive years. That section contains a specific provision allowing 
considered-produced credit for in-county transfers, but only once every 
3 years. The new act leasing provisions in the 1996 Act, as indicated, 
revamp the spring lease provisions for quotas and provide that the 
transfer of quota under that paragraph will not reduce the quota of the 
transferring farm if the quota is produced or considered produced on 
the receiving farm. Since no change was made to the in-county transfer 
provisions of 358-1(b)(3) (for those transfers which do not involve the 
same owner or operator), it appears that the 1996 Act did not intend 
for a modification to be made with respect to within-county transfers 
as allowed prior to the 1996 Act. Accordingly, the interim rule 
maintains the same considered-produced provisions, as in the past, for 
such in-county transfers (that is, considered-produced credit for 
leased quota will be allowed only once every 3 years). For inter-county 
transfers, however, the rule allows the transferring farm to receive 
considered-produced credit for any year in which the receiving farm 
produces, or is considered to have produced, the quota. This is the 
same rule that has been applied to out-of-county transfers in past 
years when such transfers were only allowed in States with a small 
total quota.

H. Other Provisions

    The interim rule makes several technical changes including: (i) 
changes necessitated by a recent USDA reorganization, and (ii) changes 
to reflect applicability of the regulations through the 2002 crops.
    Other provisions of the 1996 Act regarding peanuts will be the 
subject of subsequent notices.

List of Subjects in 7 CFR Part 729

    Peanuts, Penalties, Poundage quotas, Reporting and recordkeeping 
requirements.

Interim Rule

    Accordingly, 7 CFR Part 729 is amended as follows:

PART 729--[AMENDED]

    1. The authority citation is revised to read as follows:

    Authority: 7 U.S.C. 1301, 1357 et seq., 1372, 1373, 1375, and 
7271.

    2. Section 729.102 is amended by removing ``1991 through 1995'' and 
adding ``1996 through 2002'' in its place, and by adding a sentence at 
the end of the paragraph to read as follows:


Sec. 729.102  Applicability.

    * * * The peanut marketing quota and disposition requirements for 
peanuts for the 1991 through 1995 crops shall, as applicable, continue 
to be governed by the regulations codified at 7 CFR Part 729, as of 
April 1, 1996.
    3. Section 729.103 is amended as follows:
    a. The definition for ``FSA'' is moved to its proper place in 
alphabetical order.
    b. The definition of ``Considered-produced credit'' is amended by 
revising paragraph (iii) to read as follows:


Sec. 729.103  Definitions.

* * * * *
    (b) * * *
    Considered-produced credit. * * *
    (iii) A farm's basic quota that was not produced if the Farmers 
Home Administration or the Farm Service Agency had control of, or title 
to, such farm.
* * * * *
    c. The definition of ``DASCO'' is removed, and the definition of 
``Deputy Administrator'' is added in alphabetical order to read as 
follows:
    Deputy Administrator. The Deputy Administrator for Farm Programs, 
Farm Service Agency.
    d. The definition of ``Effective quota'' is amended by revising 
paragraph (v) to read as follows:
    Effective quota. * * *
    (v) Temporary seed quota allocated to the farm.
    e. The definition of ``First purchaser'' is added in alphabetical 
order to read as follows:
     First purchaser. Any person acquiring peanuts from a producer 
except that in the case of peanuts forfeited by a producer to CCC or 
bought from the price support loan inventory, the term means the person 
acquiring the peanuts from CCC or the inventory.
    f. The definition of ``Preliminary quota'' is revised to read as 
follows:
    Preliminary quota. For the current year and an eligible farm, the 
basic quota established for the farm for the preceding year to the 
extent that the farm is not subject to a reduction in quota.
    g. The definition of ``Temporary seed quota'' is added in 
alphabetial order to read as follows:
    Temporary seed quota. Quota temporarily allocated for the current 
crop year only and in an amount determined by FSA to account for the 
amount of seed peanuts planted on the farm for production of peanuts, 
excluding green peanuts and peanuts produced under the one-acre 
exemption set forth in Sec. 729.306 of this part.
* * * * *
    h. The definition of ``Undermarketings'' is removed.
    4. Section 729.104(a) is revised to read as follows:


Sec. 729.104  Administration.

    (a) The regulations in this part will be administered under the 
general supervision of the Administrator, FSA, and shall be carried out 
in the field by State and county FSA committees.
* * * * *
    5. Section 729.104(c) is amended by removing the phrase ``committee 
shall'' and adding ``committee'' in its place, and removing 
``Instruct'' and adding ``Shall instruct'' in its place.


Sec. 729.108  [Amended]

    6. Section 729.108 is amended by removing ``ASC'' and adding 
``FSA'' in its place.


Sec. 729.201  [Amended]

    7. Section 729.201 is amended by removing ``1991 through 1995'' 
wherever it appears and adding in its place ``1996 through 2002 and 
removing ``1990'' wherever it appears and adding in its place``1995''.


Sec. 729.204-729.214  [Redesignated as Sec. 729.206-729.216]

    8. Sections 729.204 through 729.214 are redesignated as sections 
729.206 through 729.216 respectively, and new sections 729.204 and 
729.205 are added to read as follows:


Sec. 729.204  Temporary seed quota allocation.

    (a) Applicability. The temporary allocation of quota pounds, as 
provided in this section shall be determined:
    (1) For the marketing year only in which the crop is planted;
    (2) For eligible producers for each of the 1996 through 2002 
marketing years; and

[[Page 37000]]

    (3) To exclude the production of green peanuts and peanuts produced 
under the one-acre exemption provided for in 7 CFR 729.306.
    (b) Quantity of allocation. The temporary quota allocated to a 
producer shall be the farmers stock equivalent pounds of qualifying 
seed peanuts considered planted on the farm as determined by FSA by 
multiplying the acres determined planted to qualifying peanuts times 
the per-acre planting rates of:
    (1) 95 pounds for Runner-type peanuts;
    (2) 110 pounds for Virginia peanuts;
    (3) 80 pounds for Spanish peanuts; and
    (4) 80 pounds for Valencia peanuts.
    (c) Conversion factor. For the purpose of determining the farmers 
stock basis for temporary seed quota allocations under this section, 
the amount of seed planted as determined in accord with paragraph (b) 
of this section shall be multiplied by a factor of 1.5.
    (d) Time of notification. The notice of determination for temporary 
seed quota allocations shall be made by the Deputy Administrator as 
soon as practicable following the deadline for filing certifications of 
planted acres.


Sec. 729.205  Farms ineligible for farm poundage quota.

    (a) Ineligible farms. Except for quota allocated under the 
provisions of Sec. 729.208 for experimental and research programs, 
effective beginning with the 1998 crop year, farm poundage quotas shall 
not be established for farms which are determined by FSA to be owned or 
controlled by:
    (1) Municipalities, airport authorities, schools, colleges, 
refuges, and other public entities.
    (2) A person:
    (i) Who is not a peanut producer; and
    (ii) Whose primary domicile, in the case of individual, or primary 
place of business, in the case of an entity, as determined by FSA, is 
located outside the State in which the quota is allocated.
    (b) Determination of Residency and Related Rules. For purposes of 
administering paragraph (a) of this section, with respect to farms 
owned or controlled by a partnership or corporation or other entity, 
the forfeiture in paragraph (a)(2) of this section shall not be deemed 
to apply if a person or persons with at least a 20 percent interest in 
any such entity are individuals whose primary residence is in the State 
in which the quota is allocated; provided further, that paragraph 
(a)(2) of this section shall not apply to any involuntary acquisition 
of a farm by foreclosure, or otherwise, resulting directly from the 
conduct of a public business in the State in which the quota is 
allocated, or an acquisition resulting directly by reason of a death. 
The exemption for involuntary farm acquisitions allowed under the 
preceding sentence shall only apply to the establishment of quota in 
the three crop years immediately following the date of the involuntary 
acquisition of the quota farm. Further, for purposes of applying the 
rules in paragraph (a) of this section as they regard production, the 
determination of whether paragraph (a)(2) of this section applies shall 
be made based on the crop last planted before the date on which the 
determination is to be made.
    (c) Allocating forfeited quota and sales of quotas subject to 
paragraph (a). Any farm poundage quota held on or after August 1, 1997, 
by an ineligible person as determined under paragraph (a) of this 
section shall be allocated from the quota farm to other farms in the 
same State in accordance with Sec. 729.206 of this part. In the event 
that the ineligible party acquired the subject farm on or before August 
1, 1997, such person shall have until October 1, 1997, to permanently 
dispose of the quota by sale to another farm for subsequent crop years 
in which case the transfer will be deemed to be effective as of August 
1, 1997. If the farm in dispute was acquired after August 1, 1997, then 
no quota shall be established for the farm until such time as the 
ineligibility is removed provided further, however, that the quota may 
be sold to another qualifying farm effective with the next crop year 
following the sale or such later date as may be approved by FSA.
    9. Redesignated Sec. 729.206 is amended:
    a. In the heading of paragraph (f), by removing the phrase 
``increased quota,'' and by removing the comma following the word 
``nonproduction'';
    b. In the first sentence of paragraph (f)(1), by removing the 
phrase ``33 percent of any increase in the Texas peanut poundage quota 
resulting from an increase in the national quota and'';
    c. In paragraph (f)(3), by removing the phrase, ``, as determined 
in accordance with paragraph (f)(2) of this section for the 1991 
through 1995 crops'' and adding in its place ``granted under any 
special rules for Texas under this section and its predecessor for the 
1991 and subsequent crops''; and
    d. In paragraph (f)(7), removing the phrase ``except for the 33 
percent allocated to eligible Texas counties in accordance with 
paragraph (f)(2) of this section,''.
    10. Redesignated Sec. 729.207 is amended:
    a. In paragraph (c), by removing ``Sec. 729.204(b)(2)'' and adding 
``Sec. 729.206(b)(2)'' in its place;
    b. In paragraph (d)(1)(ii)(B), by removing ``Sec. 729.212'' and 
adding ``Sec. 729.214'' in its place; and
    c. In paragraph (d)(2), by removing ``Sec. 729.204(e)'' and adding 
``Sec. 729.206(e) in its place.
    11. Redesignated Sec. 729.208 is amended by revising paragraph (d) 
to read as follows:


Sec. 729.208  Allocation of quota for experimental and research 
programs.

* * * * *
    (d) Quota for 1996 through 2002 crops. For each institution with 
continuing eligibility for which a 1995 basic quota was determined in 
accordance with this section or its predecessor, a basic quota shall be 
established for the 1996 through 2002 crops in the same manner as for 
other farms within the State.
    12. Redesignated Sec. 729.210 is amended by revising paragraph 
(a)(1) to read as follows:


Sec. 729.210  Determining a farm's effective quota.

* * * * *
    (a) Upward adjustment. * * *
    (1) The temporary seed quota allocated to the farm;
* * * * *
    13. Redesignated Sec. 729.213 is revised to read as follows:


Sec. 729.213  Erroneous notice of effective farm poundage quota.

    If the official notice of effective quota issued for a farm 
erroneously stated a quota larger than the correct effective quota, the 
quota shown on the erroneous notice shall serve as the basis for 
marketing penalty computations for the farm for the current marketing 
year only if the county committee determines and the State Executive 
Director concurs that:
    (a) Extent of error. The error was not so substantial as to place 
the operator on notice that such notice of quota was incorrect; and
    (b) Response to notice. The operator, relying upon such notice and 
acting in good faith:
    (1) Has made plans, or is engaged in activities, to produce the 
quota in the amount set forth on the erroneous notice (for example, 
land preparation; purchase of seed, fertilizer, and other production 
materials; or reducing the acreage of other crops); or
    (2) Has planted the acreage of peanuts needed to produce the 
erroneous farm poundage quota.
    14. Redesignated Sec. 729.214 is revised:

[[Page 37001]]

    a. In paragraph (a)(2) by removing ``with respect to the 1992 and 
subsequent crops'';
    b. By redesignating paragraphs (d) through (l) as (e) through (m); 
and
    c. By revising paragraph (c), adding a new paragraph (d), and 
revising redesignated paragraphs (f)(1)(iii)(A), (f)(3)(i), and (l) to 
read as follows:


Sec. 729.214  Transfer of quota by sale, lease, owner, or operator.

* * * * *
    (c) Location of farms. In order to transfer poundage quota between 
two farms, such farms must be located within the same State and, to the 
extent required by paragraph (d) of this section, in the same county. 
It is not necessary for the receiving farm to have had a basic quota in 
the current or prior year, except as provided in paragraph (d)(4) of 
this section.
    (d) Limitations on transfer by sale or lease. Subject to the 
provisions of paragraph (m) of this section:
    (1) States with less than 10,000 tons of quota. With respect to 
farms in any State for which the State's poundage quota for the year 
preceding the current year was less than 10,000 tons, transfers of 
peanut quota by sale or lease may be made to any other farm in any 
county within the State.
    (2) States with 10,000 tons or more of quota. For farms in States 
with 10,000 tons or more of quota:
    (i) Poundage quota may be transferred to any other farm within the 
same county.
    (ii) If the farm is in a county with less than a total of 50 tons 
of quota, the poundage quota may be transferred to any other farm 
within the same State without regard to the limitations set forth in 
paragraph (d)(2)(iii) of this section.
    (iii) If the farm is in a county with a total of 50 tons or more of 
quota, poundage quota transferred out of county shall be limited to 40 
percent of the quota in the transferring county as of January 1, 1996. 
Further, the cumulative unexpired out-of-county transfers for a crop 
year may not exceed the following percentages of the quota in the 
transferring county as of January 1, 1996:
    (A) 15 percent for the 1996 crop;
    (B) 25 percent for the 1997 crop;
    (C) 30 percent for the 1998 crop;
    (D) 35 percent for the 1999 crop; and
    (E) 40 percent for the 2000 and subsequent crops.
    (iv) Selecting approved transfers. For purposes of administering 
the limitations on the amount of transfers, the Director shall 
establish a method for selecting, by lot, those applications which are 
to be approved. The Director may give preference to permanent 
transfers.
    (3) Fall transfers. The limitations in paragraph (d)(2)(iii) of 
this section do not apply to 1-year fall transfers, which may, in all 
cases, be made to any farm in the same State, subject to such 
restrictions as otherwise apply for fall transfers.
    (4) Owner or operator transfer. Owner or operator transfers of 
poundage quota are permitted to contiguous counties within the same 
State without regard to the percentage limitations of paragraph 
(d)(2)(iii) of this section; provided that, the receiving farm had a 
basic quota established for the preceding year's crop and has the same 
owner, in an owner transfer, or the same operator, in an operator 
transfer.
* * * * *
    (f) Other transfer provisions.--(1) Temporary transfer of quota 
from a farm. * * *
    (iii) Filed after July 31 and before February 1 (``Fall 
transfers''). * * *
    (A) The reported or determined acreage of peanuts plus prevented 
planted credit for the transferring farm for the current year, when 
multiplied by the larger of the farm yield or the highest actual yield 
during the base period, is equal to or greater than 90 percent of the 
farm's effective quota;
* * * * *
    (3) Permanent transfer of quota from a farm. * * *
    (i) Permanent transfer of quota to the farm. For the amount of 
quota purchased or otherwise permanently transferred to the farm during 
the base period, as adjusted for any increase or decrease in such quota 
due to adjustment in the national quota during the base period.
* * * * *
    (1) Adjustment of marketings. For the purpose of computing 
production history for quota increase based on production, in the case 
of temporary transfers by owner to the same owner or operator to the 
same operator and all out-of-county transfers, if the current year's 
produced or considered-produced credit from the receiving farm exceeds 
such farm's basic quota, such produced or considered-produced credit on 
the receiving farm shall be reduced by the amount of such excess, to 
the extent of the quota temporarily transferred to such farm by owner 
or operator, and such reduced amount shall be added to the current year 
produced or considered-produced credit for the transferring farm.
* * * * *


Sec. 729.15  [Amended]

    15. Redesignated Sec. 729.215 is amended in paragraph (f)(2) by 
removing ``Sec. 729.204'' and adding ``Sec. 729.206'' in its place.
    16. Redesignated Sec. 729.216 is revised to read as follows:


Sec. 729.216  National poundage quota.

    (a) National poundage quota for 1996 and subsequent crop years. The 
national poundage quota for the 1996 and subsequent crop years shall be 
established by the Secretary at a level that is equal to the quantity 
of peanuts that the Secretary estimates will be devoted in each 
marketing year to domestic edible use (except seed), and related uses.
    (b) Disapproval of quotas. No loan for quota peanuts may be made 
available for any crop of peanuts with respect to which it is 
determined by the Deputy Administrator that poundage quotas have been 
disapproved by producers pursuant to a referendum conducted in 
accordance with section 358-1(d) of the Agricultural Adjustment Act of 
1938, as amended.

    Signed at Washington, D.C., on July 5, 1996.
Bruce R. Weber,
Acting Administrator, Farm Service Agency.
[FR Doc. 96-17690 Filed 7-12-96; 2:18 pm]
BILLING CODE 3410-05-P